Development Archives

Building projects in Pennsylvania and elsewhere can experience a host of problems and issues. Weather delays and problems in the supply chain can bring a construction project to a halt. While these may be out of the control of the contractor or developer, sometimes problems with the project stem from the developers and/or contractors themselves. Those responsible for building or remodeling a structure have a legal obligation to fulfill the terms of the contract and to ensure that the construction is free from defects. Otherwise, that developer or contractor may be held liable for damages through construction litigation.

Pennsylvania Gov. Tom Wolf announced on June 7 that Royal Dutch Shell had finalized its plans to build an ethane cracking plant in the western part of the state. The announcement was made in the form of a statement released to the press and posted online. Gov. Wolf said in the statement that Shell’s announcement came after more than four years of behind-the-scenes planning and negotiations.

When it comes to the development of real estate, in many areas of the United States there is friction between the community and those seeking to develop the property. Philadelphia is not an exception. Currently, the neighborhood of Chestnut Hill is facing this situation.

The first thing that may come to mind for many, when they hear that a new commercial real estate development is underway, is the economic profit the developers behind the project will realize as a result of it. While it is true that property development is a business that in some cases can be quite lucrative, developers may not be the only ones to profit. Depending on the scope of the project, and where it is located, it is possible the surrounding community could benefit as well. This is expected to be the outcome of a Philadelphia shopping center development recently commenced.

In an earlier post we wrote about the way in which the Gallery mall’s transformation into an outlet retail center in Philadelphia is going to be funded. Securing the expected $325 million needed for the project is not the only matter that needs to be addressed for a development to be successful. Recently, additional information about the development made the news.

While every real estate development is different, in most cases, to be truly successful, many factors must come together. In some situations this involves bringing together the right group of stakeholders. An example of development in Philadelphia that has done this is the Schuylkill River Trail. Recently voted by readers of USA Today as the best American urban trail, 10.5-miles of it is located within the city limits of Philadelphia. Included in that portion of the trail is a 2,000-foot boardwalk that was completed several years ago.

We have mentioned in previous posts that developers seeking to transform a piece of property may face many challenges. Sometimes those challenges take the form of a lawsuit. A developer attempting to develop a mixed-use project, in a Philadelphia area community, knows this all too well. In an effort to block state funding for the project, a citizens group filed a lawsuit designed to block funds received from the state.

In our last post we discussed how the need for addiction centers is a motivating factor for commercial development in communities throughout the nation, including Philadelphia. There are other trends in Pennsylvania real estate worth noting as well, such as, the demographic of individuals opting to reside in cities rather than suburbs. While readers may not be surprised to hear many millennials chose to live in these areas, the other group may not be quite as obvious–baby boomers. The movement of millennials and baby boomers to Philadelphia is one factor being cited for real estate growth in the city.

Residents of the Philadelphia area may be aware of the recent sale of the Latham Hotel located at 17th and Walnut Streets. In conjunction with the sale, hotel operations ceased. The new owners plan to convert the building, completed in 1915, back to what it was originally used as—an apartment building. The numerous hotels located in the area played a role in the sale. According to a senior vice president at PKF Consulting/CBRE Hotels, because of the rents in the area, it made more economic sense to convert the building back to residential use.

When a developer seeks to put a development plan into place there are many issues that could arise. Depending on the project, these could include problems with purchasing property, securing funding and working with architects and engineers to create a design. In addition, in some cases it could entail working through disputes with the community regarding the project. The developer of a residential high-rise planned for a site in the Rittenhouse Square area is dealing with this very thing.

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